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For what it’s worth, I’ve watched a couple of movies streamed from Netflix, and the quality isn’t too terible on my 3 mbit line at home. It’s not dvd quality, but it’s not terrible, either. Good for a tv show or something you just want to catch up on. I wouldn’t use it on a nice home theater system to watch movies, though

My only real gripe is that they have no “rating” system to tell you how your system/connection is going to perform. It does some tests, and then starts playing without telling you how your system rated. Netflix will turn down the quality on the stream if your hardware/connection isn’t up for full quality. A couple of times I unknowingly had a download going in the background on another computer at the time Netflix was testing our performance prior to streaming a video, so it gave us a lower quality stream. Looked terrible. When I stopped and restarted the movie (causing it to retest everything) we got the higher quality version. Would’ve been nice had it just told us that it was turning down the quality in the first place, so I didn’t have to spend time trying to figure out why things looked so bad.